[HN Gopher] Why are UK electricity bills so expensive?
       ___________________________________________________________________
        
       Why are UK electricity bills so expensive?
        
       Author : chmaynard
       Score  : 129 points
       Date   : 2024-12-20 16:05 UTC (6 hours ago)
        
 (HTM) web link (climate.benjames.io)
 (TXT) w3m dump (climate.benjames.io)
        
       | ZeroGravitas wrote:
       | Some of these are "costs" which reduce costs elsewhere.
       | 
       | Smart meters for example, though rollout has hit snags and
       | they've become targets for weird conspiracy theories, they are
       | basically designed to give better real time info on electricity
       | demand which helps with managing the grid.
       | 
       | This in theory should save money elsewhere.
       | 
       | Similarly for CfD. Yes the government may on net be paying a
       | subsidy to get wind power built but what was the next best
       | option? If that costs more than the CfD then that's a win.
        
         | jstanley wrote:
         | But why do you need smart meters at the level of individual
         | houses? Wouldn't putting them on substations get the same
         | benefit with much less cost?
        
           | coretx wrote:
           | Yes, but those don't help manipulate consumer behavior and
           | awareness.
        
             | ZeroGravitas wrote:
             | Apparently the UK government estimated that in 2016 and
             | 2019 the average household saved PS11 on their bill due to
             | this feedback from smart meters. This page estimates the
             | cost at PS15 so 2/3rds is recovered just from that effect.
        
               | ajb wrote:
               | There's no way it only cost PS15 in total to install a
               | smart meter. The cost of the meter has to be at least
               | that much and then you have paying a guy to actually
               | install it (which in my case took 3 attempts and caused a
               | gas leak, which took 4 or 5 guys several hours to fix -
               | although hopefully that's unusual).
        
               | 6510 wrote:
               | Hard to tell, they are all new now, eventually they will
               | all be old. Then we will know what it really costs.
        
               | hirako2000 wrote:
               | It also took 3 attempts for me but they never showed up.
        
               | Brybry wrote:
               | From a cursory search:
               | 
               | PS88 to PS143 installation cost in the 2019 analysis.
               | [3:p.21] Smart meter hardware cost PS36 to PS120 [3:p.22]
               | 
               | PS67 to PS107 installation cost in the 2016 analysis.
               | [2:p.12] PS15 (in home display) + PS44 electric + PS57
               | gas + PS29 comms equipment costs [2:p.10]
               | 
               | [1] https://assets.publishing.service.gov.uk/media/5a7f59
               | f9ed915...
               | 
               | [2] https://assets.publishing.service.gov.uk/media/5a7f2f
               | 8b40f0b...
               | 
               | [3] https://assets.publishing.service.gov.uk/media/5d7f54
               | c4e5274...
        
           | kevin_thibedeau wrote:
           | It eliminates the need for staff to manually read them and
           | guarantees they are read correctly every month.
        
             | 6510 wrote:
             | That is the sales pitch, the error rate on the overcharging
             | side is infinitely larger than that of mechanical meters.
             | Not a fun lottery to win.
        
               | Symbiote wrote:
               | The alternative isn't a mechanical meter anyway. It's an
               | electronic meter that must be read manually.
        
               | sgerenser wrote:
               | What makes smart meters more likely to read high?
        
               | toast0 wrote:
               | 20-30 year old mechanical meters tend to be pretty
               | accurate, but when they aren't, they tend to read low.
               | Especially if your usage is fairly low, the minimum usage
               | to push the wheels forward may be higher than your
               | standby loads.
               | 
               | If you've been on a meter that reads low for a long time,
               | a new meter (mechanical or electronic) will be a big
               | jump.
        
             | philjohn wrote:
             | It also opens up more granular time-of-use tariffs than
             | Economy 7.
             | 
             | Intelligent Octopus Go being one example.
        
           | Spooky23 wrote:
           | They also identify outages and let you do automatic
           | efficiency stuff -- you can enroll in a plan where your car
           | charges during off-peak periods, for example.
        
           | conradludgate wrote:
           | My energy supplier (Octopus) gives me a tarrif with half-
           | hourly pricing (smart meters in the UK only report with 30
           | minutes resolution).
           | 
           | This let's me know when electricity is in less demand or high
           | supply and schedule my day around it. Making my electricity
           | bill cheaper and likewise putting less strain on the supplier
           | which reduces their costs too
        
             | conradludgate wrote:
             | The other week, it was not very windy but it was cold, so
             | the energy price spiked pretty high (PS1/kwh). Other times
             | the energy price falls pretty low, and I regularly see it
             | be negative for some hours of the night or rarely up until
             | the afternoon.
             | 
             | Paired with a home battery it can be pretty effective, but
             | I don't have one and instead I just work around it and use
             | my electrical heating more when it's cheaper and rely on my
             | insulation to last throughout when it gets more expensive
             | during the day. I've also started cooking dinner later to
             | get past the evening hump.
        
               | conradludgate wrote:
               | Here's my prices for tomorrow for those who are
               | interested. They publish an API for this too which I have
               | loaded into a spreadsheet for my own entertainment
               | 
               | https://imgur.com/a/Z3yCNow
        
               | Hamuko wrote:
               | Just shifting some electricity usage around is a pretty
               | solid tactic with dynamic pricing.
               | 
               | I'm currently paying wholesale + 0.49 c/kWh margin for my
               | electricity and I'm averaging out to 6.67 c/kWh (incl.
               | margin) in December. Wholesale average has been about
               | 6.61 c/kWh. Add transfer and tax on top of that and it's
               | around 0.13 EUR/kWh total.
               | 
               | I live in an apartment so the two big electricity-wasters
               | are the dishwasher and the washing machine. Delaying
               | doing the laundry by a couple of days or running the
               | dishwasher half a day later keeps the average much lower.
               | And if you have an EV, just charge it during the night
               | when wholesale prices get closer to 0EUR.
        
           | Nextgrid wrote:
           | In a competent implementation, real-time metering can enable
           | near-real-time pricing where consumers are incentivized to
           | vary their consumption to help grid stability.
           | 
           | Your EV can modulate its charging very quickly, and
           | "background" loads like electric heating, water heater or
           | even A/C can also be modulated somewhat quickly (though not
           | as quick as an EV's inverter).
           | 
           | The meter needs however to make sure you indeed complied with
           | the demand in order to pay you fairly (otherwise if people
           | can defect on their obligation and still get paid, it defeats
           | the purpose of the scheme of ensuring grid stability).
           | 
           | Doing this at the substation is not granular enough because
           | then you can no longer determine who contributed what and
           | whom to pay, which then removes any incentive for people
           | actually participate.
           | 
           | In theory, this should lead to significant savings and
           | efficiency benefits, as everyone opted into the scheme can
           | now be used as an on-demand load to dump excess power (during
           | which power is not only free, but the consumer may even be
           | _paid_ to consume that power) to smooth out supply /demand
           | fluctuations.
           | 
           | Of course, the UK's smart meter scheme is administered by
           | Capita, so don't expect any of this to actually happen, work
           | reliably or actually lead to any kind of significant
           | benefits, but _in theory_ , it would be a great thing as long
           | as it's done by competent people without
           | corruption/mismatched incentives.
        
             | desas wrote:
             | Octopus are already doing this in the UK,so it does
             | actually happen.
        
         | RobotToaster wrote:
         | Maybe, but the long term planning has been atrocious, millions
         | of smart meters already need replacing because of the 3g switch
         | off.
         | 
         | It's massively wasteful if they are all going to need replacing
         | again in 10 years when 4g is switched off.
         | 
         | Not to mention the concerns about electricity companies
         | remotely forcing meters into prepayment mode or switching off
         | people's electricity supply.
        
           | Symbiote wrote:
           | Something (2G?) is generally staying available so "smart"
           | devices can work for decades.
        
           | celsoazevedo wrote:
           | Planing has been bad, but those smart meters can use 2G/EDGE.
           | The meters using mobile networks use O2, which should keep 2G
           | online until the 2030s.
           | 
           | 3G is being discontinued first because it uses more power and
           | is inefficient for data. 2G on the other hand uses less
           | power, allows phones without VoLTE support to make calls, and
           | IoT devices to use (slow) data. Over the next year or so we
           | should see networks restricting data over 2G/EDGE for regular
           | devices (calls only), keeping the data side just for IoT.
        
         | blitzar wrote:
         | > the government may on net be paying a subsidy to get wind
         | power built but what was the next best option? If that costs
         | more than the CfD then that's a win.
         | 
         | Direct investment with ownership - that would make money for
         | the tax payer but would be "socialism".
        
       | baggy_trough wrote:
       | 29p / kWh doesn't hold a candle to PG&E costs in the San
       | Francisco Bay Area.
       | 
       | It's ironic that it's quite a bit cheaper to use natural gas
       | here, since we're supposed to convert to electricity to save the
       | planet.
        
         | barbazoo wrote:
         | I would say it's tragic, not ironic.
        
         | doctorpangloss wrote:
         | The cost of bailing out owners of burnt down homes in Paradise,
         | CA worth $0 for $700k is rolled into every San Francisco PG&E
         | bill.
        
           | tristor wrote:
           | I think that's a bit of color on that, since those homes
           | weren't worth $0 until PG&E caused a fire that burnt them
           | down by neglecting required maintenance.
        
             | tehlike wrote:
             | In a way it's subsidizing people in the country side.
        
               | tristor wrote:
               | No, it's making people whole for real monetary and
               | property damages caused by PG&E's negligence. It's the
               | settlement of a lawsuit, because PG&E was negligent and
               | caused damage.
               | 
               | Whether those people rebuild in Paradise, CA or move
               | somewhere else with the money they received from the
               | settlement is an entirely different proposition. This is
               | not "subsidizing people in the country side". PG&E fucked
               | up and now they have to pay. PG&E is choosing to pass the
               | cost to its customers rather than eating into its
               | profits, which is a decision that California allowed them
               | to make.
               | 
               | EDIT: You and the GP I originally replied to seem to be
               | making the argument that after PG&E burned all these
               | people's homes down they should have been allowed to just
               | tell them to get bent so your utility bill wouldn't go up
               | in the city? What happens when it's /your/ home that gets
               | burnt down? "Sorry bucko, but your house is worth $0 as
               | it's just now a smoldering ruin. No soup for you. -
               | Thanks PG&E"
        
               | tehlike wrote:
               | I am actually not saying PGE shouldn't have to pay etc.
               | But this dynamic is part of being a country. In some
               | ways, it's similar to the insurance industry where we get
               | a pool of very healthy or young and sick or old people.
               | 
               | What PGE did was terrible, but also there's a lot to
               | blame on CA directly too.
        
               | cogman10 wrote:
               | I'm not saying PG&E shouldn't pay out, they were directly
               | responsible.
               | 
               | But I will say that Paradise was in a bad state prior to
               | the fire, simply nobody knew how bad. While a wildfire
               | like that wasn't guaranteed, they were just one bad
               | lightning strike away from the same disaster.
               | 
               | Funding FEMA, forest management services, and wildfire
               | fighters something that isn't always prioritized and it
               | should be.
        
               | tehlike wrote:
               | +1
        
               | alwa wrote:
               | Why is that a ratepayer's prerogative rather than the
               | home insurer's?
        
             | doctorpangloss wrote:
             | Did PG&E cause the fire? They are legally obligated to
             | serve those customers. It would be safer if they simply
             | didn't do that no?
             | 
             | Wait till you read the facts behind this $41m bailout for
             | 20 homes in one of the richest burbs of LA:
             | https://www.latimes.com/california/story/2024-10-29/feds-
             | to-...
             | 
             | You could argue that nobody should be living in a place
             | guaranteed to be destroyed, whether by landslides or
             | wildfires, but the government tried that in Palos Verdes
             | and got sued, lost, and now is bailing out those homeowners
             | to get out of services obligations all the same.
             | 
             | Suffice it to say, you have bought into a very well
             | marketed point of view. There was a lot of ceremony to
             | enact procedural blame on PG&E, but it obscures all the far
             | simpler solutions, that are far more just. People in San
             | Francisco are paying higher rates, no? So PG&E may have
             | been responsible for something somewhere, but the liability
             | is being borne functionally by taxpayers, via a compulsory
             | payment for energy, to balance the books on assholes living
             | in places at risk of wildfires with overinflated asset
             | values. Ultimately, the government here has decided that
             | you should get government-guaranteed-risk-free market rate
             | returns on owner occupied real estate.
        
               | tristor wrote:
               | > Did PG&E cause the fire?
               | 
               | Yes. As I recall it, the fire was caused by downed lines
               | that were energized during a dry spell, and the reason
               | the lines were downed was due to negligence around
               | maintaining the C-Hooks holding their high voltage
               | transmission lines. PG&E knew that they needed to be
               | replaced every so often, had a policy that dictated when
               | they needed to be replaced, and then ignored that policy
               | which ultimately allowed a C-Hook to fail and the
               | energized line to start the fire. In fact, PG&E had
               | commissioned a study as far back as 1987 to look into
               | this issue and confirmed that these hooks had a limited
               | lifespan.
               | 
               | They had clear knowledge of the issue. They had a
               | responsibility to maintain the system to prevent the
               | issue. They set policies around how that maintenance
               | should be conducted. Then they willfully ignored their
               | own policies, which lead to the issue they were
               | responsible to prevent. That's textbook negligence.
               | 
               | So, yes, PG&E /did/ cause the fire. They were negligent
               | in doing so. They are liable for the damages.
        
               | creato wrote:
               | I agree PGE was negligent, but it also doesn't make sense
               | to assign the entire cost of the resulting fire to PGE.
               | The scale of the fire damage was a result of many
               | factors, only some of which are due to PGE. A huge
               | destructive fire was a matter of time. Whether it was
               | caused by PGE, lightning, or an RV tire blowout was a
               | matter of chance.
               | 
               | Or another way to put it, how much liability would you
               | give the RV drivers in these two scenarios?
               | 
               | https://www.kktv.com/2024/07/23/rv-with-blown-tire-
               | sparks-se...
               | 
               | https://en.wikipedia.org/wiki/Carr_Fire
        
               | doctorpangloss wrote:
               | The cost wasn't assigned to PG&E. Brother, the CPUC is
               | approving the rate increases to pay back the settlement.
               | You are getting the same electricity today as you did in
               | 2019. The entire cost was assigned to YOU.
               | 
               | There are so many smart people on this forum. How hard is
               | it to understand the spelled-out-in-the-law relationship
               | between your compulsory payment for electricity rising
               | and the cost of the settlements?
        
               | richwater wrote:
               | > . A huge destructive fire was a matter of time.
               | 
               | You can't avoid legal ramifications by saying _something_
               | was bound to happen
        
               | zootboy wrote:
               | And the photos of said C-hooks are pretty damning:
               | 
               | https://www.nbcbayarea.com/investigations/new-images-of-
               | pge-...
        
               | vel0city wrote:
               | > This buyout program provides a viable pathway forward
               | for our most vulnerable community members
               | 
               | > Hong estimates that his home would have been worth
               | about $3.6 million two years ago
               | 
               | Yeah, this person who was able to afford a $3.6M home
               | sure sounds like "our most vulnerable" people. He needs a
               | bailout for making a poor decision on buying that house
               | in a place prone to landslides. Not the hungry kids in
               | our schools whose parents can't afford/won't provide
               | healthy meals.
               | 
               | We got money for millionaires but not hungry kids and
               | people with chronic medical needs.
               | 
               | > "We're committed to staying," Reeves, 81, said. "We're
               | pretty financially committed now."
               | 
               | > They are weeks into a major renovation after a fissure
               | forced apart rooms in their home.
               | 
               | Their home is constantly being torn apart by the ground
               | and yet they're committed to staying. Insanity.
        
               | doctorpangloss wrote:
               | Then it should be obvious to you the parallels with
               | Paradise, CA, where average home sales prices were at
               | $700k just prior to the wildfire, growing faster than San
               | Francisco's prices: the reason we are doing this bailout
               | is due to the politically powerful interests of a lot of
               | wealthy savers. The people in this thread saying "it's
               | PG&E's fault" are incredibly naive.
        
               | vel0city wrote:
               | > Then it should be obvious to you the parallels with
               | Paradise, CA
               | 
               | It is. Insane all ratepayers are shouldering all the cost
               | to rebuild rich people's mansions.
        
               | scheme271 wrote:
               | That 3.6M million dollar home might have been worth a lot
               | less before asset appreciation happened. There's quite a
               | few people living in expensive areas that bought homes
               | 20-30 years ago when it was dirt cheap, the place became
               | popular, and now they're a teacher or something who owns
               | a multi-million dollar home while living on 80k a year or
               | something.
        
               | vel0city wrote:
               | The article also mentioned their home was a new build and
               | they moved in a few years before this happened.
               | 
               | But sure, keep telling me their new mansion on quicksand
               | needs a bailout and they're far more needful than hungry
               | malnourished kids.
               | 
               | > now they're a teacher or something who owns a multi-
               | million dollar home while living on 80k a year or
               | something.
               | 
               | TBH, if their home is now worth millions, they should
               | retire and move someplace cheaper. The market is telling
               | them that land is worth way more than a lifetime of their
               | earnings. They should capitalize on that. They're still
               | far weather people that he vast majority of Americans,
               | and probably the top 0.001% of people on Earth. That they
               | failed to cash their lotto ticket in time before their
               | mansion on the quicksand fell apart leaves me zero
               | sympathy.
               | 
               | I wish I could fail at cashing in my $3.6M lotto ticket I
               | bought for relative pennies. At least I would have been
               | given the chance, no?
        
               | wat10000 wrote:
               | They did cause the fire.
               | 
               | You could certainly argue that some sort of fire was
               | inevitable, and that the fire would have been much less
               | damaging if people hadn't built their houses in such bad
               | places.
               | 
               | But the law doesn't really care about that. You can't
               | avoid liability by arguing what would have happened or
               | what should have happened. If your negligence causes a
               | fire and that fire destroys a house, you're liable for it
               | regardless.
        
               | toast0 wrote:
               | > But the law doesn't really care about that.
               | 
               | California has contribitory negligence. If the court
               | determined it was negligent to build or keep a house in
               | these places and that contributed to the loss, it must
               | determine the share of loss attributable to each party
               | and reduce the award. In some states, a party must have
               | be less than half at fault to receive compensation, but
               | California doesn't have a minimum, if you are 99% at
               | fault and the other party is 1%, you can get 1% of your
               | loss compensated.
        
           | riversflow wrote:
           | That's just factually incorrect. Paradise was forced to take
           | PGE stock (at some unrealistic valuation) as a repayment. The
           | settlement is years in the rear view mirror now. I actually
           | live in the area and meet people from Paradise. Most people
           | involved got absolutely shafted and the money is mostly going
           | to lawyers and accountants in San Francisco. Surprise.
           | 
           | PGE costs have gone up because the state's Public Utilities
           | Commission and many of our leaders in Sacramento are in bed
           | with PGE. PGE has been vastly underinvesting in
           | infrastructure development and maintenance for the last 50
           | years, which is at least partially the PUC's fault by letting
           | them take profits instead of forcing them to either lower
           | rates or reinvest. The Camp Fire shined a light on the
           | neglect, now they have to play catch up on 50 years of
           | deferred maintenance in many quite remote areas.
           | 
           | Local Sacramento ABC Station actually does some decent
           | investigative report on this. If you are interested there is
           | a fair amount of content to go through, as they started the
           | investigation in 2022, the series is called Fire Power Money.
           | 
           | Link here https://www.abc10.com/search?q=fire+power+money
        
             | doctorpangloss wrote:
             | I appreciate your wisdom to use ChatGPT's search to verify
             | your facts about the Paradise settlements. If you're asking
             | me, is it a good idea to administer a settlement between
             | PG&E and the Camp Fire victims? No. We agree there. I don't
             | doubt for a second that ratepayers and victims are getting
             | a bad deal! I don't think we should have ever agreed to the
             | settlement, and Sacramento made a huge mistake.
             | 
             | But: the settlement's law traded on the exact empathy you
             | do right now.
             | 
             | Here's where we disagree: what evidence do you need to see
             | to be convinced that _nobody_ should be living in your
             | community? Harsh words right? It 's the exact opposite of
             | the empathy you are trying to get through, that I
             | appreciate.
             | 
             | I think smart people struggle with climate science, viewing
             | it as strictly a set of facts, when in fact it is deeply
             | political: it is telling us where we can and cannot live,
             | which is as powerful as violence-protected borders.
             | 
             | We have pretty unequivocal evidence that tells us on the
             | time scales of realizing real estate returns, some
             | communities will be "worth" "$0."
             | 
             | Do you think we should have insurance of last resort in
             | California? Insurers read the same scientific studies and
             | don't protect people's homes from wildfires. It is
             | basically immaterial in the long term which human activity
             | causes the wildfire - as you say, the settlement is in the
             | rear view mirror - it could have been a gender reveal party
             | that started the flame, and then, what would you do, make
             | that person personally liable for billions of dollars? It
             | would be bailout all the same, poorly administered, because
             | it is simply _impossible_ to not  "absolutely shaft"
             | someone who says their home is worth $700k when it is
             | actually worth $0.
             | 
             | It costs $42m to just bail out 20 homes in Palos Verdes, a
             | community with very politically powerful people. It's a
             | slow motion crisis in California.
             | 
             | Do you think we should bail out all the home owners in San
             | Francisco, who bought their homes at $40,000, pay tiny Prop
             | 13 dynastically protected rates and therefore pay little
             | taxes to their own community, and have things nominally
             | worth $1.4m, when an earthquake hits? That's not _your_
             | community, and suddenly, oh man, that sounds expensive,
             | man, you don 't have bottomless empathy for that community.
             | Should nobody be living in San Francisco because of the
             | earthquake risk? Tough question.
             | 
             | So what if I spin some narrative that someone somewhere is
             | responsible or liable? It is impossible for any entity to
             | pay off all those people, including the government - it
             | couldn't even compensate the 10x fewer victims of Camp
             | Fire.
             | 
             | The solution to me is simple: don't buy a house, and if you
             | do, don't make it your only means of savings. I can escape
             | a wildfire, and I think I can escape an earthquake, but my
             | life will not be ruined, as long as I do not own an
             | overpriced home. You are talking about leaders in bed with
             | PG&E or whatever, conspiracies, and right in front of you,
             | you are surrounded, in your community, by people who
             | believe their real estate gives market returns risk free.
        
         | tehlike wrote:
         | For reference, I think we get around 60-65c/kWh here...
         | 
         | I sometimes hangout on /r/homelab, and people are talking about
         | their 600-700W homelab setup. That would cost about
         | 300-350$/month here.
        
           | barbazoo wrote:
           | That'd be GBP 0.48-0.52
        
           | semi-extrinsic wrote:
           | People are screaming from the rooftops here when we
           | occasionally hit 15 c/kWh in winter. In August this year our
           | electricity cost was $15 for the whole house. Hydropower is
           | nice like that.
           | 
           | My homelab in the basement is running an old Dell R730. It
           | draws 200-300W depending on load. I could get something much
           | more efficient, but then I would need to run a space heater
           | in that room for most of the year...
        
           | wil421 wrote:
           | Yikes, my rate is $0.0825/kWH in the southern US. Part
           | Nuclear but too much Natural Gas in my opinion.
        
             | tehlike wrote:
             | That's a great rate. My homelab excluding poe stuff I
             | suspect will end up using 300-500W. Not a lot of money but
             | still annoying to be paying.
             | 
             | 1. 56G mellanox switch - 35W
             | 
             | 2. An old box I made a router - 50W
             | 
             | 3. A two node server - 220W each
             | 
             | Replacing (2) with something that idles at 10W Will
             | probably do one node for (3) so got more ram to try out.
             | 
             | I wish we had cheap energy. I could add much more stuff to
             | this lol.
        
               | wil421 wrote:
               | My UniFi mad PoE setup draws about 100w and my NAS
               | another 100w or so. The i3 in my Supermicro board has
               | been quite the efficient little CPU. My AMD 7950 and a
               | 4070ti had to be taken off one my UPS because it was
               | going over 1000w at times. Not sure what the full draw is
               | while gaming.
               | 
               | The thing that kept me away from retired server hardware
               | isn't so much the power draw as it is the fan noise.
        
         | vladslav wrote:
         | I sometimes catch myself thinking about whether it's worth
         | collecting wood by the road to burn as a way to heat the house.
        
           | tehlike wrote:
           | Some people on craigslist sometimes are giving away wood for
           | free (you just need to arrange transport).
           | 
           | So yes, in some ways, it'd be whole lot cheaper, and
           | nostalgic too.
        
         | secondcoming wrote:
         | That's the charge for energy usage, but there's another charge
         | - the Standing Charge - that's charged per day just for having
         | a connection to the grid.
         | 
         | In 2021, for me this was PS0.236 per day, today it's PS0.60 per
         | day.
        
       | samatman wrote:
       | Third option not discussed: have the military leverage its
       | existing nuclear reactor competency to build a fleet of
       | nationalized nuclear power generation stations. I'm not saying
       | that they should tile the island with submarine-scale reactors,
       | I'm saying that their supply chain for building those knows how
       | to build nuclear power stations.
       | 
       | The only thing which makes this prospect expensive, is the lack
       | of political will to make it not expensive. So find the political
       | will.
        
         | this_user wrote:
         | And how exactly would adding more of the most expensive way to
         | generate power help reduce costs?
         | 
         | See: https://www.theguardian.com/news/ng-
         | interactive/2024/may/24/...
        
           | logicchains wrote:
           | Empirically it doesn't seem that way given countries with
           | nuclear power have cheaper electricity than those without.
           | It's especially illustrative to compare power costs in France
           | and Germany before and after Germany closed all its nuclear
           | plants.
        
           | RobotToaster wrote:
           | It's only expensive because we build so few, so have to start
           | the design from scratch each time.
           | 
           | If you look at China they design one nuke station and just
           | copy and paste it to reduce costs, since parts can be mass
           | produced.
        
           | skippyboxedhero wrote:
           | It isn't more expensive than what the UK has.
           | 
           | The reason we are in this position is because we looked at
           | building nuclear in the mid-2010s, the cost would have been
           | about half current prices, we didn't build because they were
           | too expensive.
           | 
           | Nothing has been more costly than not investing in capacity.
        
           | chickenbig wrote:
           | > And how exactly would adding more of the most expensive way
           | to generate power help reduce costs?
           | 
           | Yes, the Australian GenCost report is about generation costs
           | (no mention of transmission or storage in that graphic, for
           | instance).
           | 
           | The https://www.electricitybills.uk breakdown shows that the
           | cost to the consumer consists of far more than just the cost
           | of generating electricity. Intermittents generally connect to
           | the distribution network (given their smaller output).
           | Intermittents necessitate transmission upgrades because wind
           | farms are in a different location to people and require
           | overbuilding of capacity. Intermittents require more
           | balancing because a passing cloud or lull in the wind affects
           | their output. Intermittents require capacity payments for the
           | backup (methane) generators that have to keep on standby.
           | 
           | Plus let us not forget that the intermittent generators get
           | revenue from RO, CfD, and FIT.
        
         | immibis wrote:
         | I know that at some point in tbe last few years, oil and gas
         | companies invested in uranium mines so they could continue
         | their game of "you base your entire civilization on the stuff
         | that only we can dig out of the ground, so pay up." That was
         | the same time these comments started appearing all over the
         | internet.
         | 
         | Also, I don't want another Chernobyl next to me house, so those
         | reactors had better be properly made, therefore expensive.
        
           | samatman wrote:
           | Believe it or not, but the matter going into solar panels and
           | batteries also has to be dug out of the ground. The
           | difference is that you need a great deal more of that matter
           | to deliver comparable amounts of power compared to fission.
        
         | nradov wrote:
         | There is a bit of overlap but military reactors designed for
         | propulsion have little in common with civilian reactors
         | designed for efficient power production. They are optimized for
         | entirely different priorities.
        
         | rjsw wrote:
         | On one level, your idea is being followed. Rolls-Royce build
         | the UK submarine reactors and are working on developing small
         | modular reactors [1] for civilian use.
         | 
         | A big difference though is that UK (and US) submarine reactors
         | use enriched uranium, SMRs won't.
         | 
         | [1] https://en.wikipedia.org/wiki/Rolls-Royce_SMR
        
           | samatman wrote:
           | > _A big difference though is that UK (and US) submarine
           | reactors use enriched uranium, SMRs won 't._
           | 
           | I addressed that difference in my second sentence. The
           | technological competence is to a large degree transferable,
           | the specific designs are not.
           | 
           | And yes, something like the SMR is exactly what I'm talking
           | about, as long as it comes with enough commitment and
           | momentum to actually do the job.
        
           | kergonath wrote:
           | Last time I looked the Royce SMR design could use the same
           | fuel supply chain and processing facilities, which is a huge
           | plus compared to having to set up everything all over again
           | for something like metallic fuel.
        
       | IshKebab wrote:
       | Yeah the "network costs" bit should probably have a caveat about
       | how they are a natural monopoly and are absolutely rinsing the UK
       | for profits.
       | 
       | https://www.theguardian.com/business/2022/nov/20/unite-union...
       | 
       | "Supplier costs and margins" probably should take a fair bit of
       | the blame too.
       | 
       | When Thatcher privatised the UK energy industry to make it
       | "competitive", they basically created an entire complex web of
       | middlemen. The systems they use to communicate is enormously
       | complicated, still kind of stuck in the 90s (think CSV over FTP),
       | and would be basically unnecessary if it were just one company.
       | 
       | Ok in fairness electricity makes more sense to privatise than
       | water or railways - at least you _can_ choose where to buy your
       | electricity from, within reason.
        
         | amiga386 wrote:
         | It's an interesting rathole to go down. On the one hand, there
         | are private equity firms buying power stations and deliberately
         | turning them off to reduce supply, knowing that National Grid
         | will call them in a few hours paying them an even higher rate
         | to turn them back on... but also those operators get detected
         | and, months later, fined out the wazoo by the regulator for
         | pulling a stunt like that.
         | 
         | https://www.theguardian.com/business/2023/jan/29/gas-fired-p...
         | 
         | https://www.theguardian.com/business/2023/aug/31/uk-electric...
         | 
         | https://www.current-news.co.uk/ofgem-fines-intergen-37m-for-...
         | 
         | Also, electricity isn't any less of a monopoly. You can choose
         | _your supplier_ , but they do no more than administer your
         | metering and billing (including the government insisting they
         | install smart meters). Your house is still connected to the
         | same domestic grid as everybody else, and it's National Grid
         | plc that is selecting who's generating and when, and getting
         | paid for it.
        
           | RobotToaster wrote:
           | > but also those operators get detected and, months later,
           | fined out the wazoo by the regulator for pulling a stunt like
           | that.
           | 
           | The _ones that were detected_ were fined, we don 't know how
           | much of that goes on but more subtly.
        
             | amiga386 wrote:
             | How does one _subtly_ turn off a power station?
             | 
             | National Grid plc has minute-by-minute graphs. It can see
             | you taking the piss, and its friends in Ofgem are on speed-
             | dial.
             | 
             | https://www.ofgem.gov.uk/sites/default/files/2023-08/Final%
             | 2...
        
               | RobotToaster wrote:
               | I meant more subtle market/price manipulation.
        
           | skippyboxedhero wrote:
           | They aren't deliberately turning power stations off. We have
           | a renewable system so when those sources aren't generating
           | then we need gas.
           | 
           | All the BBG article proved is the inherent problems with the
           | system that we have. Rather than anyone being blamed for
           | creating that system, rather than anyone being blamed for
           | regulating that system, we get the same politically-motivated
           | nonsense about "evil companies"...this is why we have high
           | electricity costs. There is literally zero political
           | incentive to lower them and, as we have seen, very high
           | political gains from proposing fictional solutions. Guess
           | what? We are still going to be in the exact same place in a
           | few years because we haven't changed the thing causing this
           | (over-reliance on renewables).
        
         | euroderf wrote:
         | I remember reading in the UK papers about one of the first
         | water companies to privatize. The very first act of the board
         | was to vote themselves a BIG pay raise.
        
           | Symbiote wrote:
           | It's only relatively recently that this is being dealt with:
           | 
           | https://www.theguardian.com/business/2024/dec/19/thames-
           | wate...
        
         | HPsquared wrote:
         | It does kind of make sense to have a market for the
         | "generation" side with all the different types of power source
         | that exist now. But the infrastructure is privately owned?
         | That's crazy. Like privatising the motorway network!
         | 
         | They did try with the railway network (Railtrack) which was
         | subsequently renationalised and only the train operating
         | companies being private (and even they, like electricity
         | generating companies, are often state-owned by other
         | countries...).
         | 
         | Handing an entire national network monopoly to a single company
         | is foolish.
        
         | skippyboxedhero wrote:
         | They aren't rinsing profits.
         | 
         | Out of the PS1700 average annual bill, supplier profits are
         | PS43...this is significantly higher than has been the case
         | normally because of the volatility in energy prices. This
         | return is also controlled by the regulator.
         | 
         | For scale, the cost of government subsidies is PS183.
         | 
         | Predictably the first thing the incoming government did was:
         | announce massive new subsidies, and create a state-owned energy
         | company.
         | 
         | Network costs have also gone up because of the well-known
         | problems with performing work on any kind of infrastructure in
         | the UK.
         | 
         | The politics are part of the reason why costs are so high. We
         | constantly rotate through insane policies that relate to the
         | fever dreams of a lawyer. The reason why prices are high is
         | because we have policies in place to increase prices. Companies
         | are not making big profits (again, their returns are controlled
         | by the regulators). Look at share prices, collapsing in the
         | sector (unless they are getting government money).
        
           | IshKebab wrote:
           | You're mixing up two things. Suppliers (middlemen) aren't
           | making any profit because the government has capped prices.
           | They literally can't. But even when they could they didn't
           | make that much profit because there's pretty good competition
           | between them because consumers can choose.
           | 
           | The issue with suppliers is they are spending a ton of money
           | dealing with complexity that shouldn't exist, so even though
           | they aren't making a profit they're costing you
           | unnecessarily.
           | 
           | The people who _are_ making a profit are DNOs. Totally
           | different thing.
        
       | goodpoint wrote:
       | ...because houses are made of cardboard and use electricity for
       | heating.
        
         | xd wrote:
         | I'm not sure where you've got this idea from. Even "new builds"
         | in the UK, with there questionable building methods (which you
         | may be referring to?) are mostly insulation and incredibly
         | efficient to heat.
        
           | desas wrote:
           | The new builds are made of brick and block, and are indeed
           | insulated really well. It's the millions of older houses,
           | particularly Victorian ones, that are made of brick, are not
           | usually insulated well, and are often intentionally draughty.
        
             | Eavolution wrote:
             | What would the reason for being intentionally draughty be?
             | The only thing I can think of is if they were burning
             | candles/gas lamps to improve air quality?
        
               | neilalexander wrote:
               | To reduce condensation and mould.
        
               | albertgoeswoof wrote:
               | Damp is worse than cold
        
         | Nextgrid wrote:
         | Resistive heating is still a big thing, including _new_
         | products being developed.
         | 
         | Here's the latest: electric instant water heaters designed as
         | drop-in replacements for gas boilers in hydronic heating
         | systems: https://stromltd.com
         | 
         | All the inconveniences of a hydronic system _and_ resistive
         | electric in a single solution, what 's not to like?
         | 
         | This is the perfect "slumlord special", installed in place of
         | more economical (and ecological) solutions such as A/C knowing
         | full well the _tenant_ is going to pay the resulting
         | astronomical bills.
        
       | louthy wrote:
       | > The UK has achieved the fastest rate of grid decarbonisation
       | among advanced economies. A lot of this progress occurred when
       | renewables were still expensive, so we are stuck with a cost
       | hangover. Luckily, renewables are getting much cheaper, so the
       | tradeoffs in future policy are very different.
       | 
       | A silver lining at least. I'm old, so won't see the benefits of
       | this I'm sure, but it's still nice to know we've made some
       | tangible progress toward a cleaner future
        
         | monsecchris wrote:
         | It's so insignificant that at best we might delay the climate
         | catastrophe by a few seconds
        
           | Xelbair wrote:
           | People might not like this, but that's true.
           | 
           | as long as non-western countries keep polluting - even if we
           | achieve net-zero nothing will change other than us feeling
           | better and patting ourselves in the back.
        
             | threeseed wrote:
             | This is a very misguided view of the situation.
             | 
             | a) The transition to clean energy, transportation etc by
             | Western countries funds the development and investment in
             | new technologies. These then filter down to developing
             | countries when the economies of scale kick in e.g. solar
             | panels, electric cars.
             | 
             | b) There are also other benefits to cleaner solutions than
             | just trying to achieve net-zero. Reductions in pollution
             | reduce morbidity, improve productivity, improve happiness,
             | secure food supply etc.
        
               | graemep wrote:
               | I think you overestimate the importance of what the West
               | does. The West no longer dominates the world
               | economically. Things no longer filter down the rest of
               | the world as simply as you think. China is a bigger
               | economy than any Western economy than the US, and is
               | growing. India is about as big as any European economy.
               | Both, and many other countries are doing more and more of
               | their own R & D and have their own agendas.
        
               | elcritch wrote:
               | The West still leads in overall R&D. Even TSMC advanced
               | nodes ultimately rely on western equipment and
               | technology. New advancements in AI and vaccines were
               | western as well.
               | 
               | China has made impressive bounds in R&D but still lags in
               | many fields of scientific research. Much of their
               | research output is derivative in my experience of reading
               | a fair bit of research articles in several fields.
               | 
               | However China does lead in many fields of manufacturing.
               | The western countries are far behind in there. That is
               | important in terms of global leadership in renewable
               | energy.
        
               | threeseed wrote:
               | a) China is third to US and EU in terms of GDP. And their
               | economy is on a downwards trajectory.
               | 
               | b) Majority of the early R&D in solar, EVs etc came from
               | the US. China has been vital in driving unit economics.
        
             | fragmede wrote:
             | Knocking the western 30% of pollution down to zero is still
             | meaningful, even if the remaining 70% isn't affected (which
             | it will be). China, one is the most polluting non-western
             | countries, is going to renewables and electric vehicles at
             | a faster rate than some of the western countries.
        
               | alecco wrote:
               | * acording to CCP's reported numbers
        
               | XorNot wrote:
               | The CCP is at least heavily motivated to get rid of coal
               | because the wealthy and leadership can't buy their way
               | out of Shanghai's smog problem.
        
             | greenavocado wrote:
             | Drinking game. Drop Google Street View anywhere on the
             | territory of India. If there is a trash pile visible, take
             | a shot.
        
         | Maken wrote:
         | I would like to know what "fastest rate of grid
         | decarbonisation" even means, because the UK is definitely not
         | the nation with the largest share of renewable electricity
         | production. I guess it measures how much energy production has
         | transitioned from non-renewable to renewable sources in recent
         | years.
        
           | ZeroGravitas wrote:
           | https://ourworldindata.org/grapher/carbon-intensity-
           | electric...
           | 
           | They mean the rate of reduction in the metric graphed above.
        
           | chippiewill wrote:
           | It's the percentage cut in emissions relative to the 1990
           | bench line.
        
         | krona wrote:
         | > the benefits
         | 
         | The UK has 30GW of wind capacity. Two weeks ago wind was
         | generating 1.8GW (5% of demand at the time). The benefits of a
         | power source are only somewhat theoretical when you can't rely
         | on it being there when you need it.
        
       | jatin101 wrote:
       | Commercial energy broker here - the only 2 'real' costs in your
       | price are the wholesale and supplier costs. Choose suppliers that
       | offer a fully-fixed electricity contract, so that made up
       | variable costs such as distribution, network, etc are all
       | factored into the unit rate that the supplier charges you for
       | your contract. Avoid smart meters at all costs. Renewable / green
       | contracts are always a lot more expensive than standard
       | contracts. I help businesses across the UK get the lowest rates
       | in the market, if it's something you need help with reach out to
       | me - yousaveutilities.co.uk
        
         | gnrl wrote:
         | What's the reason to avoid smart meters?
        
           | oceanplexian wrote:
           | The security is broken and it broadcasts your information in
           | the clear. I set up a RTLSDR plugged into my laptop in my
           | kitchen and was able to read the energy utilization of my
           | entire neighborhood after about 10min of work.
        
             | benj111 wrote:
             | what information is it actually leaking though?
             | 
             | If someone wanted, they could drive up to my house and see
             | the colour of my door. The fact that someone has always
             | been able to create a database of front door colours isn't
             | inherently a data leak.
             | 
             | A UUID and electricity usage for the past half hour for a
             | house in the general vicinity isn't useful. Even if you
             | could put a name to that UUID, I struggle to think of how
             | that would be a major issue. Especially considering with a
             | thermal camera, and assuming construction details from the
             | age and type of the house, you could already estimate your
             | neighbours energy usage anyway.
             | 
             | Remote shutoff on the other hand....
        
               | krisoft wrote:
               | Could you perhaps use it to monitor which houses are
               | unoccupied?
        
             | KaiserPro wrote:
             | > The security is broken and it broadcasts your information
             | in the clear. I set up a RTLSDR plugged into my laptop in
             | my kitchen and was able to read the energy utilization of
             | my entire neighborhood after about 10min of work.
             | 
             | In America, yes. Here the meter->gateway is encrypted
             | zigbee, the gateway is over 3/4g.
             | 
             | However the remote contactor is more of an issue. You can
             | be turned off remotely without much ceremony.
        
               | dfawcus wrote:
               | Where does "here" mean.
               | 
               | In the UK only "central" England and south transmits data
               | over the mobile network. In northern England and
               | Scotland, the data is transmitted over UHF radio.
        
               | KaiserPro wrote:
               | Sorry yes, I should have been more specific. The
               | important thing is that it is reasonably well encrypted.
               | Its not like the USA where they just yeet it in the clear
               | for all to see.
               | 
               | The downside is that the non cellular backhaul is
               | provided by arquiva, who are shits.
        
           | dfawcus wrote:
           | Because they're designed for demand side load shedding.
           | 
           | Also to enable "surge pricing" such that folks ration of
           | disconnect themselves, rather than pay the surge price.
           | 
           | Other than that, they don't really have a benefit for the
           | user, the details one variable use could simply be monitored
           | by manual reading on a weekly basis.
        
         | vel0city wrote:
         | > Avoid smart meters at all costs
         | 
         | I don't mind smart meters; it's nice getting the metrics and
         | data from them.
         | 
         | I do avoid variable rate billing though.
        
           | hagbard_c wrote:
           | Variable billing can save you a lot of money, especially if
           | you have your own generation capacity - PV panels, wind/water
           | turbine etc - by making it possible to schedule maximum use
           | during low-price (usually during the night, sometimes in the
           | middle of the day) while minimising use during the morning
           | and afternoon peaks. Play this right and you'll end up with
           | negative electricity bills (in regions where small-scale
           | producers can sell to the market, Sweden being an example of
           | such). Contracts often stipulate that small-scale producers
           | can not produce more _kWh_ than they consume. By scheduling
           | consumption so that it either falls during times of excess
           | own production - which makes it possible to avoid paying
           | _energy taxes_ and _transport charges_ or when the market
           | rates are the lowest you end up with as low a bill as
           | possible. At the same time you can decide to export power to
           | the network when you happen to have excess capacity at high-
           | price moments thereby maximising income from electricity
           | sales. Play this right and you 'll end up with net-negative
           | electricity bills even while producing no more kWh than you
           | consume.
        
           | philjohn wrote:
           | I'd look more into it - Octopus Agile can save you a heap of
           | money, doubly so if you have Solar + Battery so can more
           | effectively load balance.
           | 
           | And Intelligent Octopus Go is a variable rate - 7p
           | 23:30-05:30 (and any time during the day your EV is plugged
           | in and there's a glut of green cheap energy on the grid).
        
         | AnotherGoodName wrote:
         | Variable rate smart billing can be amazing if you have the
         | right setup though!
         | 
         | Eg. An electric car that can do V2G with the following;
         | 
         | Power to the grid when Rate > Y and carCharge > 50%
         | 
         | Charge the car when Rate < X.
         | 
         | There's various posts on electric car groups where people have
         | the above setup and pull in ridiculous profits. Your typical
         | electric car can output power for a very long time during the
         | ridiculous 10000% price hikes and on the flipside when the
         | price occasionally hits ~0 charging is basically free.
         | 
         | If you have some system of power storage variable rate can make
         | you money.
         | 
         | https://thedriven.io/2024/02/27/australian-evs-could-earn-12...
        
           | vel0city wrote:
           | And then you get some big energy dry spell and rates go to
           | 1,000x their normal price and it starts costing you $20 to
           | run the kettle for a few minutes.
           | 
           | Hopefully you noticed that spike in prices ahead of time!
        
             | AnotherGoodName wrote:
             | The fixed rates that companies charge just smooth out these
             | variances since they all pay a variable rate behind the
             | scenes. The fixed rate providers will do rolling brownouts
             | if the grid gets to this state to save themselves from
             | ruin. If you're on a variable rate you can choose to cut
             | yourself off in these periods.
             | 
             | Essentially the downside you mention is worse on the fixed
             | rate: On fixed rate you'll have no power at all - the fixed
             | rate providers will cut power completely to protect
             | themselves financially if the grid is in a prolonged period
             | of extreme price (they did this in Texas). On a variable
             | rate you can choose to cut yourself off or not.
        
               | vel0city wrote:
               | > they did this in Texas
               | 
               | That is not what happened in Texas. The REPs had zero say
               | to do a rolling brownout. "Rolling" outages which became
               | semi-permanent outages were done by the delivery
               | companies, not the retail providers. Retail providers
               | can't just choose to stop selling me electricity for a
               | few hours because they think it's too unprofitable for
               | them, that's not allowed in the contract. My REP at the
               | time probably had some massive costs due to customers
               | like me which didn't lose power; they folded and sold the
               | contract to another company.
               | 
               | > On a variable rate you can choose to cut yourself off
               | or not.
               | 
               | Once again, you clearly _don 't_ know what actually
               | happened in Texas. Several people I know on variable rate
               | plans lost power for days.
               | 
               | But hey keep speaking falsehoods instead of actually
               | learning what happened.
        
               | rcxdude wrote:
               | The second part is indeed wrong: most consumer energy
               | markets have a wholesale market and grid operator, and
               | the grid operator is ultimately responsible for the call
               | on brown-outs. The companies that sell electricity retail
               | to invididual homes are generally buying on that
               | wholesale market, but they're not in a position to cut
               | off their customers: there's straight-up no mechanism to
               | do that on a moment's notice, because the grid-level
               | control doesn't overlap with the retail seller's
               | customers (these retail companies are often basically
               | just a financial instrument that turns the combination of
               | variable wholesale and grid operator fees into a fixed
               | price bill and some customer support: your neighbour can
               | buy from a completely different company and if anyone
               | wants to shut off you but not them they need to come to
               | your house and physically disconnect the lines). What
               | happens in a situation like texas is that the retail
               | companies who are selling at a fixed price start losing
               | money fast, and can't really do anything about it in the
               | short term. If they've built up enough of a buffer from
               | their margins, they may survive, or they may go bankrupt
               | and their customers will need to move to a different
               | provider, but that's a process that takes weeks to
               | months, not minutes in a price spike.
               | 
               | (A similar thing happened in the UK: there weren't any
               | brown-outs, but the spike in wholesale energy prices sent
               | a lot of smaller retail energy companies under. If you
               | were with one of them, like I was, you had no
               | interruption to your supply and in fact won out compared
               | to those on variable tarrifs: the losers were the
               | investors in the retail companies and those who they were
               | unable to pay).
               | 
               | I will agree in general though: unless you have
               | particularly unusual energy consumption habits, or think
               | that the energy market will go up more than the retail
               | companies thing they will, you'll probably win out on a
               | variable rate contract over time, especially if you have
               | a battery to time-shift your consumption (And with the
               | most common UK provider for this, there is still a cap on
               | how much you'll pay, even if wholesale prices skyrocket
               | like they did in Texas).
        
               | toast0 wrote:
               | > if anyone wants to shut off you but not them they need
               | to come to your house and physically disconnect the line
               | 
               | I'm not in the UK, but I gather my utility can do a radio
               | controlled disconnect (they may need to come onsite to
               | reconnect). I would hope that wouldn't be used to enable
               | a virtual brown out for customers of a particular energy
               | marketplace, but I think it's a capability of many
               | communicating meters.
        
           | hagbard_c wrote:
           | > on the flipside when the price occasionally hits ~0
           | charging is basically free.
           | 
           | Not where I live - Sweden - since there is a fixed _energy
           | tax_ raised on electricity. We buy electricity on the
           | artificial  'Nord Pool' market at market rates + 2.5 ore (1
           | ore is 1/100 Swedish krona, at current exchange rates 1 ore
           | is about equal to $0.009) surcharge which means that the
           | actual electricity costs are 0 when the market rate is at
           | -0.025 SEK/kWh. Such a 'free' kWh costs us around 0.88 SEK
           | due to:
           | 
           | - 0.4280 SEK energy tax
           | 
           | - + 25% 'value-added tax' on top of that tax (yes, tax on tax
           | is a thing here) makes this 0.5350 SEK/kWh
           | 
           | - 0.34 SEK//kWh 'transport charge' (this includes 25% value-
           | added tax)
           | 
           | All this means the market rate per kWh has to fall below
           | 0.905 SEK/kWh for electricity to actually be 'free'. This has
           | happened but fortunately this is a rarity. Fortunately? Yes,
           | of course. This basically only happens when there is a large
           | discrepancy between electricity production and electricity
           | demand/transport capacity which in turn lead to excessive
           | voltage and frequency in the distribution network which in
           | turn can lead to the network going off-line.
        
         | longwave wrote:
         | This smells like an advert. Over the last year I've spent less
         | money on energy by being on Octopus Tracker (which requires a
         | smart meter) over any fixed tariff.
        
           | switch007 wrote:
           | Many have also not and are switching away from Agile.
           | 
           | It hit PS1 a couple of weeks ago. Ouch
           | 
           | It's cheap if you use the majority of your energy in the wee
           | hours right?
        
         | doctorpangloss wrote:
         | This is a deeply flawed but empathetic point of view. Sure,
         | maybe the big bad smart meters are secretly conspiring against
         | you. If things were so simple, why doesn't someone in the
         | government just negotiate a simple price for everyone? Why have
         | middlemen like you at all?
        
         | KaiserPro wrote:
         | Disclosure: I have a house battery.
         | 
         | over the last three months, I've been paying on average 16p a
         | unit. Thats with a car as well. On the days in the winter when
         | solar isn't doing shit, we top up at the lowest price that day.
         | 
         | This kinda goes to the articles point which is to you can
         | avoid, or limit the peak with local storage.
         | 
         | The issue with the battery is that its costs a shit tonne. a
         | basic battery is going to cost something like PS8k installed.
         | 
         | Its almost certainly cheaper to upgrade the grid compared to
         | adding batteries to a million households. Especially as the
         | lifespan of batteries isn't that long compared to the super
         | grid.
        
           | Nextgrid wrote:
           | The unsaid, "quiet part" about batteries is that they're a
           | fire hazard. No matter how "safe" they are branded as, the
           | failure mode is disastrous and life-threatening when they
           | _do_ fail. It 's insane that those things are being sold and
           | installed in homes at all. But then again this is in a
           | country where installing solar power inverters in the attic
           | of wooden houses was also a thing (no surprises as to what
           | the outcome of a failure would be).
           | 
           | Proper solution is to pool them in a dedicated buildings so
           | you still get the benefit of locality at the neighborhood
           | level while containing the consequences of a failure and
           | limiting them to property damage (vs potential loss of life),
           | but that would use up land that can otherwise be used as a
           | way to (literally) seek rent, so it cannot happen.
        
             | KaiserPro wrote:
             | > about batteries is that they're a fire hazard.
             | 
             | yes, although they are statistically much safer than
             | fridges, or combined washer driers. (unless you include
             | cheap e-bikes or hoverboards...)
             | 
             | I don't have mine inside the house, its very much outside
             | with a wooden lintel supporting a surprisingly sandy flower
             | trough.
             | 
             | I also have micro inverters, because they are more
             | efficient, and less fucking noisy. They are also, as you
             | hint at, much safer. Partly because they are not switching
             | ~400v DC but also because they don't need to handle as much
             | power.
        
         | philjohn wrote:
         | Sorry, but this feels entirely wrong.
         | 
         | If I didn't have a smart meter my levellised cost of energy
         | wouldn't be negative like it is now (EV tariff + Solar +
         | Battery).
        
       | nradov wrote:
       | I find it so weird that UK citizens have often just sort of
       | passively chosen to be poor. Like they still had food rationing
       | for _years_ after WW2. Is there some sort of cultural blind spot
       | which prevents them from understanding that there are better ways
       | to do things?
        
         | jorblumesea wrote:
         | This is rich, given you seem to be American.
        
           | smeeger wrote:
           | you have to admit english people have a weird tick when it
           | comes to poverty. you worship poor people. and yes, you guys
           | willingly live like you are poor when you guys are definitely
           | not poor
        
             | bfmalky wrote:
             | This is such a weird take. I have no idea where you are
             | getting your ideas from, but I don't know if you've heard
             | of this thing we have in the UK called 'the class system'.
             | Poor people are definitely not worshipped in the UK. And
             | the wealthy do generally like to demonstrate their wealth
             | in the usual ways (cars, homes, holidays, schooling, etc),
             | so I'm wondering where you've got this idea that people in
             | the UK somehow romanticise poverty.
        
             | toolslive wrote:
             | It's a cultural difference I observed between Europeans and
             | Americans: Americans hate it being called
             | unsuccessful/poor, but don't mind being called dumb.
             | Europeans hate being called stupid, but don't mind being
             | called unsuccessful/poor. Obviously, it's not a binary
             | thing, but there's some fundamental difference in attitude.
        
               | nradov wrote:
               | Stupid is as stupid does. We Americans love Forrest Gump.
               | Success comes more from hard work plus luck than from
               | intelligence.
        
             | jorblumesea wrote:
             | I'm not english at all. Just pointing out that no American
             | should ever be criticizing anyone for how their government
             | and society is setup. The only reasons Americans need to be
             | "rich" is because health insurance is a scam, a car
             | accident can bankrupt you, the tax code is entirely for the
             | wealthy, and social services are poor at best. It's a fake
             | wealth, one where you can have 3M in investments and not be
             | able to retire because the system is set up so poorly.
        
             | vixen99 wrote:
             | Not for long I suspect. There has been a rather marked
             | exodus of millionaires from Britain since July as a result
             | of a range of fiscal changes promised by the government.
             | Some significant businesses have decided to relocate.
             | Unrelated to this: now it's been found that a _majority_ of
             | Brits receive more in benefits than they contribute in
             | taxes. Not a good outlook. Meanwhile it 's estimated that
             | the richest 1% of earners already pay 29% of the country's
             | income tax.
        
               | ben_w wrote:
               | > now it's been found that a majority of Brits receive
               | more in benefits than they contribute in taxes. Not a
               | good outlook.
               | 
               | Isn't it an automatic requirement of the income
               | distribution?
               | 
               | The median not being the mean, and all.
        
               | desas wrote:
               | > now it's been found that a majority of Brits receive
               | more in benefits than they contribute in taxes
               | 
               | This has been the case for decades. It's not news.
        
               | kergonath wrote:
               | But surely it's Labour's fault anyway. Damn socialists.
        
         | petesergeant wrote:
         | Can you give some examples? Other than the utter twatscape that
         | was Brexit, it's a pretty competitive country in most ways
        
           | hnburnsy wrote:
           | Start by looking at the crazy over-regulation that happens to
           | farmers in the UK.
        
             | petesergeant wrote:
             | I thought they were still pretty well in sync with the old
             | EU laws (CAP) -- what are some specific examples you object
             | to?
        
               | hnburnsy wrote:
               | NVZ, EIA, animal tracking, just to name a few that have a
               | high burden, with little benefit.
        
         | dukeyukey wrote:
         | > Like they still had food rationing for years after WW2
         | 
         | To be fair the UK was completely broke and responsible for
         | feeding half of Europe.
        
         | bfmalky wrote:
         | What a bizarre thing to say.
         | 
         | I guess there are some examples of self sabotage, such as
         | Brexit, but no, on the whole people in the UK do not choose to
         | be poor. Like any nation we are at the mercy of the outcomes of
         | the decisions of our politicians and larger global effects that
         | are out of our control.
         | 
         | Also, there are plenty of wealthy people in the UK. You do know
         | that right? The UK is still around 6th in the nominal GDP
         | rankings, so not quite an economic basket case (yet).
        
           | skippyboxedhero wrote:
           | It isn't bizarre.
           | 
           | The UK has many policies in place that are designed to limit
           | output. These policies are not only not unpopular, they are
           | wildly popular and are basically impossible to change.
           | 
           | Housing is one, infrastructure is another. Like people say we
           | aren't choosing to poor...HS2 is the most expensive rail
           | project ever per mile, double the cost of the outrageously
           | expensive one in California. Why? Because our system gives
           | unlimited power to lawyers, consultants...we were building
           | bat tunnels (literally tunnels for bats) that cost PS100m.
           | 
           | And it isn't limited to this. Look at the last Budget: we are
           | in the middle of fiscal collapse. Tens of billions for green
           | energy projects that add to the cost of bills, huge pay rises
           | for the public sector (where productivity is at the same
           | level as 1997), on and on.
           | 
           | How can you not think this stuff is intentional? There is no
           | reason for almost everything we are doing, it makes
           | absolutely no sense but we are being driven off the cliff by
           | politicians, civil servants, lawyers, media/PR, consultants
           | who control this country...to rephrase that: you are saying
           | that there was no reason 11th century Britain couldn't become
           | very rich when it was funnelling all the money to monasteries
           | that were producing nothing but fat monks? The intention of
           | the system isn't to make Britain rich, it is make people
           | inside the system rich...which it is doing (again, HS2 cost
           | PS1bn for a railway that didn't get built...where do you
           | think that money goes? there is no railway but there were
           | tens of thousands of consultants...).
        
         | amiga386 wrote:
         | I find it weird that _medical bankruptcies_ are a thing, or
         | people involved in car crashes demanding they _don 't_ get an
         | ambulance and critical emergency care, because they know
         | they'll be billed thousands or hundreds of thousands for being
         | _out-of-network_.
         | 
         | Is there some sort of cultural blind-spot?
         | 
         | Or maybe each country has their own ups and downs, and we can
         | accept that even if there is objectively a "better way" to do
         | things, and a country's government can be convinced to try this
         | better way, it stil has to bring the people along with it, and
         | those millions of people all have all kinds of hangups and
         | incentives that get in the way; politics are hard.
         | 
         | With regard to post-war food rationing, much of it was due to
         | crop failure or stockpiles being ruined by terrible weather,
         | and obviously the rest of Europe was ravaged and destroyed. But
         | it was also political. Labour liked rationing and the Tories
         | didn't, and the Tories stoked public anger at it. Clearly the
         | UK citizens _didn 't_ like it, it was the main fight of the
         | 1950 general election.... which Labour narrowly won. Then
         | Labour called a snap election in 1951, won a record high
         | voteshare, but narrowly lost to the Tories.
         | 
         | If you're genuinuely interested in the topic, Wikipedia has an
         | informative timeline:
         | https://en.wikipedia.org/wiki/Rationing_in_the_United_Kingdo...
        
           | CommanderData wrote:
           | Soon enough we'll have the best of both worlds. High taxes,
           | stripped out NHS then American style medical and bankruptcy.
           | 
           | Can't wait for people to moan about it on LBC.
        
         | switch007 wrote:
         | No, the US actively chose to make us poor
        
         | ben_w wrote:
         | > Is there some sort of cultural blind spot which prevents them
         | from understanding that there are better ways to do things?
         | 
         | Yes, but it's not specifically British: most nations (and many
         | companies) I've looked at in any depth seem to have this blind
         | spot -- "not invented here" is one of several kinds of in-group
         | favoritism.
         | 
         | https://en.wikipedia.org/wiki/In-group_favoritism
         | 
         | Also see this with diets, religious and political affiliations,
         | and back in the day used to see it with Mac vs. PC.
        
         | Nextgrid wrote:
         | The UK is completely broken by corruption disguised as
         | incompetence, with everyone in power to change things profiting
         | off the status-quo and thus having no incentive to make the
         | change. Add in a steady stream of distractions where the media
         | sows race/xenophobia warfare so the people are too busy
         | fighting between themselves to realize who their real enemy is.
        
       | hughes wrote:
       | Is 906 GBP (~1100 USD) typical for a household? That seems
       | outrageously high.
        
         | bowsamic wrote:
         | Yes
         | 
         | Type | yearly usage | average annual cost
         | 
         | Low (flat or 1-bedroom house / 1-2 people) | 1,800 kWh |
         | PS669.95
         | 
         | Medium (3-bedroom house / 2-3 people) | 2,900 kWh | PS943.36
         | 
         | High (5-bedroom house / 4-5 people) | 4,300 kWh | PS1,291.34
         | 
         | source: https://www.britishgas.co.uk/energy/guides/average-
         | bill.html
        
         | dukeyukey wrote:
         | Annually, that sounds about right.
        
           | hughes wrote:
           | Oh, I thought this was monthly. The article doesn't specify,
           | and all other bills I've seen are monthly. Do Brits pay
           | annually?
        
             | rcxdude wrote:
             | You don't pay annually, but because of the substantial
             | variation in energy usage throughout the year, you'll
             | generally price-compare on an annual basis, and usually the
             | monthly payment is a kind of pro-rata value where you over-
             | pay in summer and under-pay in winter.
        
             | wiether wrote:
             | Electricity consumption will vary during the year so it
             | seems fair to give the yearly total to have the actual
             | cost; and you can divide by twelve if your prefer a monthly
             | average.
             | 
             | Meanwhile, if they only gave a monthly figure, one could
             | wonder if it's an average or if it's taken in January or
             | July.
        
             | porker wrote:
             | Normally pay monthly by Direct Debit, but because usage
             | varies so much between summer and winter we assess and
             | estimate usage annually.
        
               | usr1106 wrote:
               | This is how it used to be in Finland, too. More houses
               | than in many other countries are heated electrically.
               | With the cold winters here the variation is extra big.
               | 
               | Still since a couple of years ago bills have to be paid
               | according to monthly (sometimes bimonthly) real
               | consumption. I had the feeling this was even a regulatory
               | requirement to make people aware of the real costs and
               | encourage saving. Cannot find a reference to that now.
               | Either I remember it wrong or the search results are just
               | too polluted by marketing pages.
               | 
               | All meters are read remotely with hourly precision. An
               | increasing share of households has spot price contracts.
               | So the price changes every hour. Sometimes negative,
               | sometimes 60 cents/kWh or more to mention the extremes.
               | Switching to 15 minute pricing is on the way already
        
             | switch007 wrote:
             | PS900/mo would bankrupt most of the country lol
        
             | dfawcus wrote:
             | Historically quarterly. Some of us still do pay on that
             | schedule.
        
         | a2tech wrote:
         | In a historic home in the Midwest a single month in the depths
         | of of the winter could easily be 700-800 usd.
        
           | Spooky23 wrote:
           | That's crazy. I live in New York in an old drafty house. My
           | highest bill is about $400-450 and it's much colder here.
           | Those rates are brutal.
        
           | bpodgursky wrote:
           | This is an extreme outlier. I have a 4,700 square foot home
           | in the Midwest, electric heating (heat pump + backup direct
           | heat) and only occasionally hit $300/mo in a cold spell.
        
             | gsk22 wrote:
             | Heat pumps are something like 5-6x as efficient as
             | resistive electric heaters. So no surprise that your bill
             | would be lower.
             | 
             | Of course, heating an entire house with (non-heat-pump)
             | electric heat in a cold climate is kind of crazy. Natural
             | gas is way way cheaper. But I've seen it in old houses here
             | in the Upper Midwest, so it's not _too_ out of the
             | ordinary.
        
               | bpodgursky wrote:
               | Heat pumps are so affordable now, that just feels like a
               | poor decision-making rather than an economic hardship.
               | You could finance a heat pump and the savings would pay
               | itself off in a year.
        
               | grapesodaaaaa wrote:
               | I was also going to point that out. Resistive electric
               | heating costs could easily reach that much, but it's a
               | horribly inefficient way to heat your house.
        
             | dnissley wrote:
             | My first house was in the midwest, built around 1920, and
             | had plaster walls with no insulation. It was only around
             | 1400 sqft, but we did have (natgas) heating bills in that
             | range ($600-$700/mo December through February).
        
         | Havoc wrote:
         | Monthly as others have said.
         | 
         | 900 is a small household with limited heating, more like a
         | condo than house.
        
       | trebligdivad wrote:
       | How much does digging a hole or laying a cable cost here in the
       | UK compared to elsewhere? I'm just trying to get a feel for
       | whether things like the transmission/distribution network costs
       | are higher than elsewhere.
        
         | HPsquared wrote:
         | The HS2 project is mostly that - and very, very expensive it
         | seems.
        
       | drcongo wrote:
       | The same author wrote the blog post that was on the front page
       | here recently about the plummeting cost of solar [0]. I really
       | like his posts, readable by someone like me who is way below
       | _layman_ on the subject, but I think also pretty interesting to
       | someone with experience in the field.
       | 
       | [0] https://climate.benjames.io/solar-off-grid/
        
         | dfawcus wrote:
         | Yeah, but that is pretty much an irrelevance here in the UK.
         | 
         | We don't even get that much sun in summer, today sunrise was at
         | 0842, sunset at 1540 - so not even 7 hrs of daylight. Even then
         | it was a very dull day.
         | 
         | So in the period (winter) when we most need power, local solar
         | is essentially useless.
         | 
         | Local wind may be better, but the economics for it don't really
         | work - requiring 100% gas turbine backup, and high costs due to
         | intermittent use of said turbines .
        
           | drcongo wrote:
           | The author is in the UK and covers most of that in the
           | article.
        
           | edent wrote:
           | Sorry, that's not true. I have (non-optimal) solar panels in
           | the UK. I generate 100% of my annual electricity usage from
           | them across the year.
           | 
           | In summer, I can easily get over 20kWh per day - against a
           | daily usage of 10kWh. I release all of my data at
           | https://gitlab.com/edent/solar-data/
           | 
           | Today, in the dead of winter, I got 2.8kWh - https://bsky.app
           | /profile/solar.bots.edent.tel/post/3ldqqrvkw... - a not
           | insignificant amount. My battery charged overnight, so I only
           | drew about 4kWh from the grid during the day.
           | 
           | You can read all about how well solar works in the UK on my
           | blog https://shkspr.mobi/blog/tag/solar/
        
       | graybeardhacker wrote:
       | The graph shows the price for 3100 kWh. I'm not sure if that is a
       | very low annual amount or a very very high monthly amount.
       | 
       | The average US household uses 10,000 kWh annually ~833 kWh per
       | month. So I'm guessing most Americans reading the article and
       | looking at the interactive graph are thinking either: this is
       | very cheap or very expensive, depending on whether they are
       | assuming it's monthly or annual.
       | 
       | In the US the average price for 3100 kWh in California would be
       | $1062 which is among the highest in the continental US. So right
       | in line with GB.
       | 
       | In New York it would be $710. Florida it would be $454.
       | 
       | So it's high, but not as eye-watering as it seemed to me
       | initially.
        
         | piva00 wrote:
         | Median income and take home pay should be brought into account
         | though. California has one of the highest even by US standards
         | so a $1000 bill for the median Californian family feels much
         | less expensive than for the median Manchester family.
        
         | bfmalky wrote:
         | That's the annual figure. But just for electricity. Most UK
         | homes are heated with gas, and many have gas stoves, so the
         | average kWh annual gas figure is much higher (~12,000kWh).
        
         | Aachen wrote:
         | We're at ~3.6 MWh in a ground floor apartment with 2 adults,
         | with water heating (e.g. showering) electric but building
         | heating on gas (though we use a space heater a lot as well,
         | probably to the tune of 0.2 MWh/year)
        
           | Hamuko wrote:
           | I wonder if I should feel bad since I'm currently at 2830 kWh
           | in 2024 for a single household with all heating costs not
           | coming out of my electric bill.
        
             | klasma wrote:
             | I'm at ~1200 kWh for what sounds like the same.
        
         | switch007 wrote:
         | We mostly don't have AC, we have tiny houses, our heating is
         | gas powered. Lots of showers aren't electric either. We don't
         | use huge amounts compared to the US
        
           | nine_k wrote:
           | Gladly would, but few can afford :-/
        
         | J_McQuade wrote:
         | 3100 kWh is the figure set by the regulator as the
         | representative annual usage used to calculate prices for e.g.
         | tariff comparison between suppliers. It makes sense to use it
         | here.
        
         | matthewmorgan wrote:
         | Californian pricing would be okay if we had Californian living
         | standards.
        
         | Hilift wrote:
         | There is clearly a difference between states that invested in
         | projects that went over budget. Power generation is cheaper in
         | a lot of states due to the price of natural gas is dramatically
         | lower than it was 20 years ago. Florida uses gas for 75% of
         | electricity.
        
       | jillesvangurp wrote:
       | An important reason that power is expensive in the UK is that it
       | doesn't use zonal pricing and is effectively not giving the right
       | price signals to consumers of power to move closer to where the
       | cheap power is (e.g. data centers) or to conserve power when
       | power is expensive; or producers of power to invest in power
       | generation closer to where the power is scarce and expensive.
       | 
       | Another point to make is that the national wholesale price of
       | power in the UK is based on the price of the most expensive thing
       | in the market at any point. Which now that they shut down coal is
       | usually gas which at this point the UK mostly imports because gas
       | production in the North Sea fields has been petering out. It no
       | longer is the cheap resource it once was.
       | 
       | Even Scotland which either exports or curtails dirt cheap wind
       | power most of the time gets to pay expensive gas rates for their
       | power. Why is power curtailment a thing there? Because there is
       | no price incentive to use the power. Otherwise people might be
       | doing sane things like charging their EVs, powering their heat
       | pumps, etc. Instead Scotland imports gas for heating and petrol
       | for driving their cars. At the same time they curtail wind power
       | by the GW.
       | 
       | Greg Jackson from Octopus (who are the largest energy operator in
       | the UK) has been calling for this for some time. I don't live
       | there but his name comes up a lot in several of the clean energy
       | podcasts I follow. Smart person that has a lot of sensible things
       | to say on this topic.
        
         | chickenbig wrote:
         | > and is effectively not giving the right price signals to
         | consumers of power to move closer
         | 
         | While I sympathise with the notion of zonal pricing, there are
         | side-effects to making the change, especially when power is
         | intermittent e.g. https://www.uksteel.org/steel-
         | news-2024/businesses-write-to-... . I'm not sure what the
         | correct metric is.
         | 
         | > the national wholesale price of power in the UK is based on
         | the price of the most expensive thing in the market at any
         | point
         | 
         | How much of the electricity demand goes through a bilateral
         | agreement (or one where generation and retail are the same
         | organisation, like EDF)? Also I seem to recall that the "pay
         | the highest accepted bidder model" used to be argued as
         | lowering the bids, resulting in a lower cost to the consumer!
        
         | 7thaccount wrote:
         | Zonal also has issues with congestion, lack of locational price
         | signals, and something called inc/dec gaming. A Nodal design
         | (like in many US wholesale markets) fixes this, but some of the
         | key policy makers are reluctant to go in that direction as it
         | would be a ~7 year project and would introduce revenue
         | uncertainty in the meantime when they are trying to decarbonize
         | and need to make it easy for developers to get financing. Both
         | pro/against arguments for nodal pricing have merit. There have
         | been many discussions on this in government.
         | 
         | Marginal cost based pricing is extremely unintuitive to those
         | outside of the field, but nearly all economists support it. The
         | reason is that this eliminates a lot of the gaming in pay-as-
         | bid designs and helps incentivize investment in more
         | efficient/cheaper generation, while driving out less efficient
         | clunkers that may not be profitable anymore. The reality is of
         | course far more complicated. These markets have saved untold
         | amounts of money by optimizing over large regions, but you can
         | also point out "missing money" problems where there simply
         | isn't enough investment in generators with access to firm fuel
         | (as opposed to when we just had monopoly utilities). As a
         | result, much of the US has an "at risk" or "very high risk" of
         | not having enough generation during summer/winter peak.
        
           | singhrac wrote:
           | Yeah, I'm not sure I understand your argument here. I work in
           | the area. I can understand revenue uncertainty, but the
           | solution is to sign a PPA. When Texas transitioned to a nodal
           | market many existing generators got grandfathered into zonal
           | pricing via free options, which is doable (e.g. any project
           | built in the next 5 years will get this free option).
           | 
           | Give me an example of a "missing money" problem. I don't
           | think these problems exist when you have capacity markets or
           | ancillary service markets with enough incentives to exist
           | (e.g. payments for standing offline, ready to turn on).
           | 
           | The big issue with UK power markets is that there is no
           | incentive to build a huge power line down the country right
           | now that delivers power from Scotland (where there are huge
           | wind resources) to the rest of the country. Texas did this
           | (very very successfully) with the CREZ.
           | 
           | The UK has many many competent engineers and making the
           | energy grid more efficient is an attractive opportunity for
           | many.
        
             | 7thaccount wrote:
             | I've also worked in the area for many years.
             | 
             | PPAs typically require the bank to be counterparty and that
             | requires a forecast of the prices that will be received in
             | the market over a lengthy period. The folks at Ofgem talked
             | about how going nodal would be nice, but that they are
             | worried about it being such a big project (these markets
             | typically take 5-7 years to go from design to
             | implementation in the US) that would take focus away from
             | what is already mostly working for them. Overall,
             | completely changing the market structure leads to
             | uncertainty that investors don't like.
             | 
             | The grandfather point is a good one. Something could
             | possibly be done there, but not sure of the complications.
             | 
             | The missing money problem is very much a real thing. You're
             | right that capacity markets and other resource adequacy
             | mechanisms create side payments to fix this, but not
             | everyone has that. Texas infamously had an energy-only
             | design that hasn't worked out so well and is why they have
             | so many ongoing proposals like the PCM to address the
             | reliability issues. It is also why fast start pricing has
             | been pushed so hard by FERC. Even with the capacity
             | markets, there are numerous issues such as the extremely
             | high prices in PJM that is leading to numerous lawsuits and
             | condemnation from their independent market monitor. The
             | markets work well at reducing costs, but there are a lot of
             | ongoing issues being addressed in numerous stakeholder
             | groups and at FERC.
        
               | singhrac wrote:
               | Sorry, I didn't mean to imply you hadn't, just offering a
               | reason why I had a strong opinion.
               | 
               | Am I misunderstanding what you mean by counterparty? In
               | the US, banks provide the tax equity and sometimes the
               | project finance, but the PPA counterparty is a consumer,
               | i.e. a utility or a large load (e.g. tech company data
               | center). The forecast is necessary, but like I said, the
               | uncertainty can be hedged.
               | 
               | Well, I'm talking about how linking a nodal market to a
               | capacity or ancillary service market is necessary (i.e.
               | purely nodal market without payments for reliability
               | don't make sense). Texas's energy-only design would not
               | have been saved from the 2021 disaster via a capacity
               | market or a zonal price (gas availability dropped by
               | 45%).
               | 
               | I think the PCM was always misguided and unnecessary
               | (from just cursory understanding). I don't have time to
               | respond to all the points about various capacity markets,
               | but unfortunately a busy time of year, and will respond
               | later.
        
         | deergomoo wrote:
         | > Greg Jackson from Octopus (who are the largest energy
         | operator in the UK) has been calling for this for some time. I
         | don't live there but his name comes up a lot in several of the
         | clean energy podcasts I follow. Smart person that has a lot of
         | sensible things to say on this topic.
         | 
         | I've got a lot of time for Octopus, which is an odd thing to
         | say about a utility company. It's amazing how much of a
         | difference it can make when a company makes it a. pretty easy
         | to speak to someone when you have a problem or question
         | (especially via email) and b. getting that problem sorted or
         | question answered isn't so arduous you want to jump off a
         | bridge. It once took me six months to convince British Gas to
         | actually start charging me for my gas and electric.
         | 
         | Plus every time there's a price cap change or something out of
         | the ordinary going on, they send out emails explaining it in
         | plain English (including, as you say, reiterating the case that
         | our pricing model is utterly daft). They also have an API for
         | customers so you can pull your usage data, which is pretty
         | neat.
        
           | gambiting wrote:
           | I must be the only person in the UK that has had an abysmal
           | experience with Octopus, where they gave me a quote in
           | writing, I attempted to sign up for it, couldn't due to
           | "technical difficulties" on their end but got another email
           | promising that the quote will be honoured once the
           | difficulties are resolved....and of course once they finally
           | fixed their system a month later they refused to honour it. I
           | kept forwarding copies of emails they sent higher and higher
           | up and finally was assigned a "senior customer agent" who
           | basically said their decision is final and I can take them to
           | an ombudsman if I want to. Then they couldn't bill me
           | correctly for 6 months straight because no one knew why my
           | smart meter wasn't sending them data, and then another time
           | they literally provided incorrect information about my IHD
           | when I asked why is the price for my tariff wrong. They are
           | an absolutely useless company and I'd switch in a heartbeat
           | if there was anyone else with a similar offering for charging
           | EVs, no one else gets even close.
        
         | omnibrain wrote:
         | It's exactly the same in Germany. In addition the state
         | government of Bavaria in the south east does everything to keep
         | wind power from being built in their state and worked against
         | high voltage power lines to bring cheap and abundant energy
         | from the north to his state.
        
           | fakedang wrote:
           | To be honest, Bavaria isn't the ideal place for wind power
           | imo, WHEN THERE ARE ALTERNATIVES.
           | 
           | Braindead Germany just woke up and decided that they want to
           | do away with nuclear and suck the icy cold teats of Mother
           | Russia.
           | 
           | Wind isn't suited for inland Germany, especially in a place
           | like Bavaria, which has the frickking Black Forest ecosystem
           | and a mountainous terrain. Not to mention the winds are much
           | slower there than in North Germany. For the cost calculus
           | that wind energy provides, it's best suited for underutilized
           | offshore areas or desert climates.
           | 
           | Germany forcing wind power is basically a sorry excuse they
           | have to compensate for their energy shortfall - wind and
           | solar can be deployed relatively faster, but of course solar
           | doesn't make sense in Germany, hence the government is trying
           | to shove down wind.
        
             | Propelloni wrote:
             | You are free to believe what you want, but the Black Forest
             | is not in Bavaria. Some other observations are not wrong
             | per se, but heavily spin-doctored. For example, the average
             | wind speed in Bavaria is 6.9 m/s, which is about 2m/s
             | slower than average wind speed in Schleswig-Holstein but
             | very much in the economical range of wind energy facilities
             | of 3 to 12 m/s, or gas imports from Russia to Europe have
             | fallen by ~70% from end of 2021 to end of 2023 which is
             | still too much, but not exactly sucking a teat, and so on.
        
         | graemep wrote:
         | > Even Scotland which either exports or curtails dirt cheap
         | wind power most of the time gets to pay expensive gas rates for
         | their power
         | 
         | 1. window power is not "dirt cheap" because of the rates the
         | wind farms get paid. As you said they get paid the wholesale
         | rate, and IIRC it is the greater of the wholesale rate and a
         | minimum rate they are guaranteed by the government.
         | 
         | 2. the reason curtailment happens UK's is because there is a
         | lack of grid capacity to take it where it is needed. Most of
         | the wind generating capacity is in Scotland, which has about
         | 10% of the UK's population. This part of the problem would be
         | helped by cheaper rates when there is excess energy, but
         | increasing the use of wind power would mean higher bills
         | because of 1.
         | 
         | The cost of fixing this will mean building grid capacity, so it
         | means higher electricity bills.
         | 
         | There is a good explanation here:
         | https://climate.benjames.io/uk-electricity-bills/
         | 
         | The TL;DR version is we built wind power when it was expensive,
         | subsidised it at those prices, and now are stuck with paying
         | for it at those prices.
        
         | bob1029 wrote:
         | > Octopus
         | 
         | I was briefly a customer of theirs in the US while they were
         | still doing variable/index/wholesale rates. They wrote a good
         | article about this:
         | 
         | https://octopusenergy.com/blog/index-prices-are-under-threat...
        
         | gehsty wrote:
         | No expert but there is segmentation in terms of network costs
         | to generators (tnuos), which come out of the CFD generators are
         | awarded, so while bill payers have a single cost the utilities
         | that generate their power do feel the effect of where they
         | build their plant.
        
         | pxeger1 wrote:
         | FWIW, the government is in the middle of reviewing how the
         | electricity market works, although it's probably not going to
         | be implemented until 2025+
         | https://www.gov.uk/government/collections/review-of-electric...
        
         | WalterBright wrote:
         | We had similar problems with the Nixon/Ford/Carter price and
         | allocation controls on gasoline. There were shortages and long
         | lines in some states and gluts in others. Carter was baffled
         | about what to do.
         | 
         | Reagan ended it on day one with an Executive Order to repeal
         | the controls. The lines disappeared overnight and never
         | returned.
        
       | jnsaff2 wrote:
       | Here's a controversial take: electricity is incredibly cheap _for
       | the utility it provides_.
       | 
       | It is also a fairly well working market _in the current system
       | context_.
       | 
       | I witnessed this by working for an electricity related startup
       | and by doing all the math involved it was really hard to make the
       | math work out right. The possibility to optimize is there but the
       | margins are really slim, even with the large price swings in the
       | time of use markets in EU.
       | 
       | Can the infrastructure be better? Absolutely, it needs ton of
       | work, but again margins are slim and incentives for large
       | improvements are small.
       | 
       | Do we have a dire need for renewable and moreover dispatchable
       | renewable energy? Absolutely. This means more clean generation
       | and more storage (quite hard).
       | 
       | Does energy _feel_ expensive for households? Yes.
       | 
       | Is it actually expensive?
       | 
       | Could you imagine life without it?
       | 
       | What would it be like?
       | 
       | If you were in this situation, how much would you be willing to
       | pay then?
        
         | Nextgrid wrote:
         | > Is it actually expensive? Could you imagine life without it?
         | 
         | I don't think this kind of rhetoric helps in any way those who
         | are in "fuel poverty" (which seems to be a UK specific term, as
         | I've never heard that in any other context) and have to choose
         | between food or heating.
         | 
         | Energy is not some magic supernatural thing we're running out
         | of. Given the right equipment it can be created out of thin air
         | (wind and/or solar). The reason UK's energy prices are so high
         | is decades of corruption disguised as
         | mismanagement/incompetence, not that the absolute price of
         | electricity is somehow high.
        
       | dtgriscom wrote:
       | Nitpick: such recurring costs are not "expensive"; they are
       | "high". It's like saying a plane is flying at a "large" altitude,
       | or a car on the highway is traveling at a "big" speed.
       | 
       | Native english speaker, but definitely not a grammarian, so I
       | can't explain why...
        
       | yumraj wrote:
       | The rate shown is 29p which comes to 36 cents.
       | 
       | It is substantially less than PG&E California prices, which
       | average around 50-55 cents.
        
         | Havoc wrote:
         | Nobody is getting california salaries in rural UK though...
        
           | yumraj wrote:
           | Fair point - I did not consider purchasing price parity.
        
         | philjohn wrote:
         | I'm in the UK and with solar and battery, and having an EV
         | there are tariffs out there where the levellised cost you'll
         | pay is approaching 7p per kWh.
         | 
         | Intelligent Octopus Go is one example - between 23:30 and 05:30
         | all of your electricity usage is 7p per kWh, for the entire
         | house. For this, you give up controlling when your EV is
         | charged as Octopus either control it through the car, or
         | through a compatible charger. When your car is plugged in, they
         | build a charging schedule when the grid is cheapest and
         | greenest. You give them an "I need to add this % of charge and
         | it to be done by this time tomorrow morning" and it just works
         | it out. On days with a glut of renewable generation (i.e., it's
         | very windy, or very sunny) you will get half hour slots at 7p
         | during the day as well.
         | 
         | Now comes the solar and PV element - their "outgoing octopus"
         | export scheme pays 15p per kWh, so in the summer you can build
         | a nice credit buffer from exported excess energy, and then in
         | the winter, charge the battery whenever the cheap rate is
         | active and given a big "enough" battery, most of your usage
         | will cost you 7p + 5-10% (efficiency losses from AC/DC/AC
         | conversion).
         | 
         | The payback period for Solar + Battery, especially in the UK
         | where we aren't saddled with high tariffs for panels, is coming
         | down markedly. It used to be well in excess of a decade, but is
         | between 5-10 years now.
        
         | jeffbee wrote:
         | According to the EIA Monthly, average California residential
         | prices were 30C/ in October. Your statement is closer to being
         | correct if you say "PG&E prices" instead of "California
         | prices". PG&E has ~6 million accounts in a state of 40 million
         | people.
        
           | yumraj wrote:
           | Updated..
        
       | kranke155 wrote:
       | The Uk should just burn coal for a while. I'm sorry but it's the
       | only sane solution. The current energy prices are wiping out the
       | economy.
        
       | asdefghyk wrote:
       | To pay for renewable energy ? Thats what's happening in my
       | country , although renewable energy supporters claim renewables
       | are cheaper. .....
        
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